Today, in my view, may well be remembered as the “beginning of the end.” Which is why today’s article topic – which I’ll get to shortly – is so urgent. And likely, why for the first time in my 4½ years at Miles Franklin, I awoke to not one, but multiple overseas orders to buy gold and silver.
That said, I need to address something extremely important. Which is, a facetious comment by none other than “Tyler Durden” of Zero Hedge. Who, although certainly addressing a real concern in a perpetually fraudulent world, inadvertently cast aspersions on Brink’s Security –our trusted partner in our Montreal – and soon-to-be a second Canadian city – storage program.
To wit, last night’s incredible Zero Hedge expose of an India-like gold leasing scheme – not by a government, but a Canadian bullion dealer, which is advertising to pay clients a fee for allowing them to hypothecate their allocated and/or segregated metal. In the article, “Tyler Durden” snidely commented “we wonder if CBS’ generous precious metal interest payment scheme is funded by Brinks, or one of the other prominent names in the business such as Scotia Mocatta, HSBC or even JPM – all of which as we have documented in recent months, have been running precariously low on physical gold in their gold vaults.” In other words, suggesting Brink’s could be part of an Indian (or U.S.) government-like Ponzi scheme, using a Canadian bullion dealer to try and “steal” some of its back. When in fact, what’s really going on rings more of a bullion dealer desperate for product, in a world where product is rapidly drying up. Which, if it does, could very well bankrupt said dealer – with your gold, if you are crazy enough to participate in such a scheme.
Even though the comment is clearly tongue-in-cheek, in a world this engulfed with fraud, it unquestionably could be construed to be an accusation – when, in our view, such an accusation is entirely unwarranted. There’s a reason Brink’s has been the world’s leading storage company for 157 years; just as there’s a reason why Miles Franklin has an A+ Better Business Bureau rating after 27 years of operations. Which is, a sterling reputation for honesty – not to mention, a rock solid balance sheet in no need of additional sources of capital. Plus, in the case of our storage program – which we believe is the world’s finest – our accounts are not only segregated; and audited by one of the world’s top auditors; but Miles Franklin’s officers personally accompany said auditors several times a year. In fact, I’ve been to two of said audits, and seen my personal gold audited. In other words, have no fear, as our Brink’s Canada storage program isn’t going anywhere!
That said, it’s on to the day’s actual news. Which in my view, is quite dire, as the last remaining pegs in the “powers that be’s” market propping scheme were pulled out from under them yesterday – starting with the ridiculous, “oil PPT” orchestrated “dead cat bounce” in crude oil, which was decidedly destroyed by 1) once and for all, the prospect of oil production cuts (which all along, I said would never happen) being “thrown up upon by Saudi Arabia and Iran”; and 2) by yet another monstrous API inventory build, announced right after the NYSE close. In other words, we may well be in our last days – or hours – of $30+/bbl for months, or even years to come (barring all out Middle East war) – as well as any veneer of hope that commodities may rebound any time soon.
Secondly, yesterday’s ugly stock close – and Precious Metals’ surge – which has continued into the early hours this morning, signified, once and for all, a massive technical breakdown, suggesting much, much lower financial asset prices in the coming weeks and months.
“As Bloomberg reports, a top in the S&P 500 would also be confirmed should the S&P 500 finish below 1,926.82 on Tuesday.”
Well, it closed at 1,921 on Tuesday – despite a spirited PPT “hail Mary” effort – and is a lot lower early Wednesday morning. To that end, the past week’s comical PPT-orchestrated 1,000 point Dow bounce, which is now shouting “dead cat bounce” as loudly as possible, appears to be a mere memory; as commodities, equities, sovereign yields, high yield bonds, and essentially all markets are back in freefall mode – except for Precious Metals, of course, which are surging. The same “horrible headlines” that catalyzed such inexorable trends all winter are still here, and getting worse each day – such as the following…
- South Korean exports down 20% in February
- This horrifying, 2008-like chart of exploding subprime loan delinquencies
- The global banking system on the precipice of collapse
- Plunging U.S. consumer confidence
- Fears that close to $4 trillion of commodity-related debt could default in the coming 12-24 months
- Surging odds of a Europe-crippling Brexit this summer
- Moody’s cuts Brazil to junk status, setting the stage for a cancellation of this summer’s Olympic games
To that end, today’s principal topic – of the potentially “most important conference call ever,” to be held tonight, free to the public, at 7:00 PM EST. In it, David Stockman, in my view the world’s top financial analyst and market forecaster, will be warning that an equity market crash is imminent – likely by the end of March; in which, the vile “ETFs” that have malevolently “deformed” financial markets for two decades, including GLD and SLV I might add, are likely to become so illiquid, investor losses could be catastrophic.
Stockman, who last week wrote that said “dead count bounce” has occurred “after the cat is already dead,” has been the inspiration of my horrifyingly negative – and dead on – outlook that commodity markets are in for a multi-year, perhaps multi-decade bear market; and has been right on top of every major market decline. In fact, his previous “most important conference call ever” was right before the Fed hiked rates in December – which he claimed would be a watershed event in history, catalyzing an unprecedented market crash (which, by the way, I too vehemently forecast, back in September). He also called the crash of Amazon.com, 2015’s most lunatic “market darling” stock, to the day; as well as the plunge of Tesla and countless other high-flying investments. And the fact that he is sticking his neck out so confidently – regarding a topic I firmly believe in – only enhances my view that indeed, the “end game” has indeed commenced, as I have been screaming from the top of my lungs for the past month.
Will he be right – that a gut-wrenching market crash awaits us by the end of March? I don’t know if he’ll be that dead on; and to that end, no one will know until March passes. However, his message could not be timelier; nor have its “odds” been higher at any time since the last crisis commenced in the summer of 2008. As I have said for weeks now, I have NEVER been so terrified of what’s coming in my entire 27-year career – as this time around, there will be no Central bank, or Federal government, “backstop” to save the day, or even “kick the can.” No, the inevitable collapse of the global monetary system has shifted to imminent; which is why everyone should at least listen to tonight’s conference call, at this link. And more importantly, act to protect themselves whilst they still can, to the best of their abilities.